Top Title Concerns When Buying Property in Dearborn, Michigan

Buying a home is a major financial and emotional investment, and in a city like Dearborn — which combines older neighborhoods, industrial-era properties, and evolving zoning landscapes — it pays to be vigilant about title issues. Below are some of the most important title concerns you should address before closing on your next property.

1. Outstanding Liens & Unpaid Taxes

One of the most common title pitfalls in Michigan real estate is discovering liens or unpaid tax obligations attached to the property. A thorough title search will reveal if the property has outstanding mortgages, judgments, tax liens, or other encumbrances. Paul Beck+2Noble Path Legal+2
In Dearborn, a buyer must ensure that any such debts from prior owners are satisfied or addressed at closing. Without doing so, you could inherit a financial liability.

2. Fraudulent or Improper Deeds & Chain of Ownership

Title issues frequently stem from errors in recording deeds, forged signatures, missing heirs, or undocumented transfers. In Michigan, the title work must trace a clean chain of ownership. Schlender Law PLC+2Meroueh & Hallman LLP+2
In the Dearborn market, where many properties may have decades of history, even a clerking recording mistake or a missing heir can raise serious issues. It pays to demand a complete title examination and to understand how the current owner acquired the property.

3. Easements, Survey Discrepancies & Boundary Disputes

Whether it’s driveway easements, utility access, encroachments, or incorrect lot lines, boundary matters are a frequent source of dispute. The title may look clean, yet an unrecorded easement or a neighbor’s encroachment could affect your use. LegalMatch Real Estate Lawyers+1
Given the age and development history of some Dearborn subdivisions and parcels, it’s wise to order a recent survey and review any recorded easements or building encroachments before you commit.

4. Undisclosed Heirs or Failed Probate

Imagine buying a property only to find years later that someone else claims an ownership interest. In Michigan, if a former owner passed away without clearly transferring title through probate or inheritance, the title can be unsettled. Noble Path Legal+1
In Dearborn, especially for older homes, verifying that ownership was properly transferred at each stage (including by will or estate) helps avoid nasty surprises.

5. Zoning, Use Restrictions & Historic District Impacts

Though not always characterized as a “title defect,” restrictions on property use — whether from city zoning, historic?district overlay, or homeowners’ associations — can significantly affect a buyer’s rights. For example, if the home lies in a historic district in Dearborn (e.g., Springwells Park Historic District), you may be subject to additional review for exterior changes. Wikipedia
Confirm how the property is classified, what use is permitted, and whether there are special assessments or restrictions tied to ownership.

6. Title Insurance & What It Covers

Given the risks above, title insurance becomes an essential tool. In Michigan, the buyer (or seller, by custom) can purchase an owner’s policy that protects the buyer from past defects, plus a lender’s policy to protect the mortgage provider. Michigan+1
Key things to check:

What exactly does the owner’s title policy exclude?
Are there known defects that the title company is excluding?
If closing is delayed, are there interim requirements?
Ensuring you safeguard your investment with the correct policy is critical.

7. Special Considerations for Dearborn Area Properties

Older housing stock: Many homes in Dearborn were built in the mid-20th century or earlier; older transfers may have documentation gaps.
Industrial & commercial adjacency: Some residential properties may adjoin or lie near commercial/industrial zones or old utility easements, complicating title reviews.
Municipal overlays & assessments: Dearborn has seen redevelopment and public?works initiatives; make sure there are no pending special assessments or city liens tied to the parcel.
Neighborhood evolution: What was once a single?family district may be rezoned or subject to density change — check zoning history and how the title reflects current use.

8. Steps for the Buyer in Dearborn to Mitigate Risk

Hire a title company with experience in Wayne County/Dearborn real estate.
Request a full title search plus a recent survey of the property.
Review the title commitment carefully: ask about any remaining exceptions and how they will be handled at closing.
Ensure the owner’s title insurance is issued at closing (rather than after).
Check for any pending assessments or homeowner association obligations.
If anything arises (undisclosed heirs, boundary disputes, or missing chain of title), consult a real estate attorney experienced in Michigan property law. Hirzel Law+1
Insist that any discovered defects be cured or addressed in the sales contract (e.g., seller must clear liens before closing) or be comfortable with the risk (if you purchase with exclusion).

9. Why this Focus Matters

What looks like a straightforward purchase can become a financial and legal quagmire. Without proper title work, buyers may find themselves defending ownership, paying off liens they did not know about, or dealing with neighbor encroachments. Michigan attorneys consistently emphasize the importance of proper title work in real estate transactions. Paul Beck
In the competitive market around Dearborn, prudent buyers stand out by verifying title early and delaying closing for due diligence rather than rushing into it unprepared.

Conclusion

Buying property in Dearborn offers many advantages — mature communities, strong infrastructure, proximity to metro Detroit amenities — but it also carries risks, particularly on the title side. By being aware of common issues — from unpaid liens, to survey discrepancies, to chain-of-title irregularities — and by securing appropriate protection via title insurance and legal advice, you position yourself to purchase with confidence. If you’re purchasing for the long term, these extra steps are minimal cost compared to the potential headaches of a title dispute years down the road.

Learn more about our comprehensive title insurance services here.

Thank you for reading! If you enjoyed this article and want to explore more content on similar topics, check out our other blogs at Sonic Loans, Sonic Realty, and Sonic Title. We have a wealth of information designed to help you navigate the world of real estate and finance. Happy reading!

Provider and Settlement Service	Charge or Range of Charges
Sonic Realty LLC	1%-6% of purchase price
Sonic Title Agency, LLC	Title Insurance Policy: $950 - $1706 on a $250,000 property. (Rates vary and are dependent on the state, selling price, and loan amount on the property.) Title Search Fee: $250 - $325 (where applicable) Closing Fee: $450 - $650
Sonic Loans Inc. This company provides various real estate mortgage loan origination activities either as a third-party originator or a mortgage broker, including loan pre-qualification, competitive bid process (when providing third-party origination services), loan origination, loan pre-approval, loan structuring, processing, and closing.	Loan Origination Charge: 0-3 % of loan amount (may include 3^rd party fees) Loan Discount Fee/points: 0.5%-6% of loan amount. Application/Processing Fee: $0.00 - $875.00 Flood and tax service: $0.00 - $95.00 Underwriting Fee: $0.00 - $1295.00 Document Review Fee: $0.00 - $400.00 Appraisal Fee: $0.00 - $850.00 Credit Report Fee: $0.00 - $135.00 Actual charges may vary according to the particular lender selected, the particular services provided, and the underlying transaction, borrower selections, etc. Some or all of these fees may be charged by third parties and/or the Member Mortgage Lender/Mortgage Broker. The Member Lenders and Mortgage Brokers have agreed to pay a fee ranging from 0.5% to 2.75% of the loan amount to Sonic Loans in connection with a range of loan origination services provided by Sonic Loans to the Member Lender/Mortgage Broker. The fees are paid either directly to Sonic Loans by the Member Lender/Mortgage Broker or billed directly to you at closing.

Provider and Settlement Service	Charge or Range of Charges
Appraisal Fee	$0-$800
Credit Report Fee	$63-$125

Top Title Concerns When Buying Property in Dearborn, Michigan